Head to Head Analysis: Chatham Lodging Trust (NYSE:CLDT) & Pebblebrook Hotel Trust (NYSE:PEB)

Chatham Lodging Trust (NYSE:CLDT) and Pebblebrook Hotel Trust (NYSE:PEB) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Earnings & Valuation

This table compares Chatham Lodging Trust and Pebblebrook Hotel Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chatham Lodging Trust	$295.08 million	2.45	$15.05 million	$0.08	193.36
Pebblebrook Hotel Trust	$1.48 billion	1.60	-$65.81 million	($0.88)	-24.01

Chatham Lodging Trust has higher earnings, but lower revenue than Pebblebrook Hotel Trust. Pebblebrook Hotel Trust is trading at a lower price-to-earnings ratio than Chatham Lodging Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Chatham Lodging Trust and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chatham Lodging Trust	4.00%	1.56%	1.00%
Pebblebrook Hotel Trust	-4.55%	-2.73%	-1.30%

Insider and Institutional Ownership

88.4% of Chatham Lodging Trust shares are held by institutional investors. 8.1% of Chatham Lodging Trust shares are held by company insiders. Comparatively, 3.7% of Pebblebrook Hotel Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Chatham Lodging Trust pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -4.5% of its earnings in the form of a dividend. Chatham Lodging Trust has increased its dividend for 2 consecutive years. Chatham Lodging Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for Chatham Lodging Trust and Pebblebrook Hotel Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chatham Lodging Trust	0	2	3	1	2.83
Pebblebrook Hotel Trust	3	6	3	2	2.29

Chatham Lodging Trust currently has a consensus price target of $14.25, suggesting a potential downside of 7.88%. Pebblebrook Hotel Trust has a consensus price target of $18.27, suggesting a potential downside of 13.52%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Chatham Lodging Trust is more favorable than Pebblebrook Hotel Trust.

Volatility and Risk

Chatham Lodging Trust has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Summary

Chatham Lodging Trust beats Pebblebrook Hotel Trust on 13 of the 17 factors compared between the two stocks.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.